United States of America, Acting Through the Agricultural Stabilization and Conservation Service v. Willis R. Gerth
Court of Appeals for the Eighth Circuit
1Opinion of the Court
MAGILL, Circuit Judge.
The Department of Agriculture’s Agricultural Stabilization and Conservation Service (ASCS) appeals from denial of a motion for modification of automatic stay and for setoff in a Chapter 12 reorganization proceeding. 136 B.R. 241. ASCS claims it has a right under 11 U.S.C. § 553 to set off a debtor’s Conservation Reserve Program (CRP) payments against a debt which the debtor owes the government. This case addresses two issues of first impression: (1) whether assumption of executory CRP contracts by a debtor-in-possession under 11 U.S.C. § 365 transforms ASCS’s obli*1430gation…
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